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To Bargain or Not to Bargain: That Is the Question

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  • Lapan, Harvey E
  • Sandler, Todd

Abstract

We use economic analysis in a simple game-theory framework to ascertain under what circumstances a government would want to precommit itself to a no-negotiation strategy. From the government viewpoint, we examine both the choice of deterrence expenditure (i.e., expense meant to reduce terrorist logistical success during incidents) and whether to negotiate or not.
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  • Lapan, Harvey E & Sandler, Todd, 1988. "To Bargain or Not to Bargain: That Is the Question," American Economic Review, American Economic Association, vol. 78(2), pages 16-21, May.
    • Handle: RePEc:aea:aecrev:v:78:y:1988:i:2:p:16-21
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